A legal process in Ontario where a lender sells a property to recover an unpaid mortgage without going through court foreclosure.
Power of sale is more common in Ontario than foreclosure. The lender must provide the borrower with a Notice of Sale (Form 1) and allow a redemption period (typically 35-37 days after the notice is served). During this period, the borrower can pay the arrears and legal costs to stop the sale. If the property sells for more than the mortgage balance plus costs, the surplus goes to the borrower. If it sells for less, the lender can pursue the borrower for the deficiency.
Related terms: Private Mortgage